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NCC Empowers Telcos to Recycle SIMs Inactive for Six Months in Nigeria

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The Nigerian Communications Commission (NCC) has announced that telecommunications companies (Telcos) are authorized to deactivate inactive subscribers from their networks after six months of inactivity.

This is a key provision outlined in the newly approved guidelines for Telcos by the NCC, which will be implemented soon.

The new NCC guidelines, titled, ‘Draft Quality of Service Business Rules’, stipulate the minimum quality and standards of service, associated measurements, and key performance indicators for measuring the quality of service.

Per the guidelines, if a subscriber remains inactive for an additional six months, there is a possibility of losing their number, unless there is a network-related issue preventing the activation of the Registered Glove Enclave (RGE).

“A subscriber’s line may be deactivated if it has not been used, within six months, for a Revenue Generating Event (RGE), and if the situation persists for another six months, the subscriber may lose their number, except for a network-related fault inhibiting an RGE,” the guidelines stipulated.

Recycling of inactive phone numbers has remained a big subject in Nigeria, following the arrest of one Anthony Okolie, a Delta State-based trader, by the Department of State Services (DSS), for using a SIM previously owned by Hanan Buhari, the president’s daughter.

Based on the new guidelines, the NCC said that telcos have the authority to reassign dormant SIM cards without recourse to the previous owners, as long as the inactivity falls within the stipulated period of six months.

For subscribers who wish to recover their lines after it might have been recycled, the commission said they must provide “proof of good reason for absence and are at liberty to request for line parking.”

In the guidelines, the NCC announced other regulations, including alert etiquette.

The commission stated that during credit alert notifications while on a call, telecommunications companies (telcos) should provide “a single short-beep” to the call initiator two minutes before the call is set to end, and another beep at 30 seconds before termination.

The NCC also said that if a call is unable to last for up to 30 seconds, a low credit announcement should be played when the call is initiated.

These new guidelines have been introduced per Section 57 of the NCC Act, allowing stakeholders to provide their input on the policy.

Additionally, the NCC directed in the guidelines, that telcos ensure that customers are attended to within 30 minutes upon their arrival at any of the telcos’ service centers nationwide.

“For customer care centers, waiting time to be physically attended to by relevant staff at customer care centers is 30 minutes. The licensee shall provide means of measuring the waiting time, starting from the time of arrival at the premises,” the guideline said.

The commission also said telcos must ensure that customers are hastily attended to when they call a helpline or visit their providers’ offices.

“Lines should not be more than three times; maximum number of rings before a call is answered by either an IVR machine or a live agent should not be more than five; and where a customer decides to speak to a live agent, the maximum duration allowable on the queue/IVR should be five minutes before answer,” the NCC said.

The regulator added: “In exceptional cases where a live agent may be unavailable within five minutes to answer the call, a customer should be given an option to hang up to be called back within a maximum time of 30 minutes. Customer care lines that can be accessible through 21 free access numbers and if one number, then it should accommodate multiple other network calls at the same time.”

South Korean Lawmakers Pass Crypto Bill to Protect Investors, Vitalik Concerned on SEC’s Regulations

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South Korean lawmakers have passed a bill that aims to protect investors in the cryptocurrency market. The bill, which was approved by the National Assembly on Friday, requires crypto exchanges, asset managers, and custodians to register with the Financial Services Commission (FSC) and comply with anti-money laundering and consumer protection rules. The bill also imposes a 20% tax on crypto income above 2.5 million won ($2,100) per year.

The South Korean National Assembly opines that the bill will provide a legal framework for the regulation of cryptocurrencies and digital assets in the country. The bill, which was approved by a unanimous vote on June 29, 2023, aims to protect investors from fraud, money laundering, and other risks associated with the crypto industry.

The bill defines cryptocurrencies as “digital assets that can be traded or transferred electronically using cryptographic methods”. It also requires crypto-related businesses, such as exchanges, custodians, and brokers, to register with the Financial Services Commission (FSC) and comply with anti-money laundering (AML) and know-your-customer (KYC) rules. Additionally, the bill imposes a 20% tax on income from crypto transactions exceeding 2.5 million won ($2,200) per year.

The passage of the bill is seen as a positive step for the development of the crypto sector in South Korea, which is one of the largest markets for digital assets in the world. According to a report by Chainalysis, South Korea ranked third in terms of crypto adoption among 154 countries in 2022. The report also estimated that South Koreans traded over $106 billion worth of cryptocurrencies in 2022, accounting for 17% of the global market share.

The bill is expected to provide more clarity and certainty for both investors and businesses in the crypto space, as well as enhance the credibility and legitimacy of the industry. The bill will also help prevent illegal activities and protect consumers from scams and hacks that have plagued the crypto scene in recent years. For instance, in 2018, two major South Korean exchanges, Coinrail and Bithumb, were hacked and lost over $70 million worth of cryptocurrencies combined.

The bill will take effect in September 2023, after a three-month grace period for existing crypto businesses to comply with the new regulations. Those who fail to do so will face fines or imprisonment. The FSC will also issue detailed guidelines and standards for the implementation of the bill in the coming months.

The bill is widely welcomed by the crypto community in South Korea, as well as by international observers and experts. Many believe that the bill will set a precedent for other countries to follow suit and adopt a more progressive and supportive stance towards cryptocurrencies and digital assets.

In a different shift, Vitalik Buterin, the co-founder of Ethereum, has recently expressed his concern about the possible regulatory actions that the U.S. Securities and Exchange Commission (SEC) might take against some of the emerging blockchain platforms, such as Solana, Avalanche, and Polkadot.

In a podcast interview with Lex Fridman, Buterin said that he was worried that these platforms, which have been gaining popularity and market share in the decentralized finance (DeFi) and non-fungible token (NFT) sectors, might face the same fate as Ripple, which is currently embroiled in a lawsuit with the SEC over whether its XRP token is a security or not.

Buterin argued that these platforms, which he called “rollups on steroids”, are essentially centralized entities that have a lot of control over their networks, such as the ability to pause transactions, roll back blocks, or censor users. He said that these features might make them more vulnerable to regulatory scrutiny and intervention, especially in the U.S., where the SEC has been cracking down on crypto projects that it deems to be offering unregistered securities.

Buterin said that he hoped that these platforms would eventually decentralize more and adopt more transparent and democratic governance models, but he also acknowledged that this might be difficult to achieve in practice. He said that he was not trying to criticize or attack these platforms, but rather to warn them and their users of the potential risks they might face in the future.

He also said that he was not worried about Ethereum’s own status as a security, as he believed that Ethereum had sufficiently decentralized over time and had established itself as a public good that benefits the whole crypto ecosystem. He said that Ethereum’s upcoming transition to proof-of-stake (PoS) and Shanghai Upgrade would further enhance its scalability, security, and sustainability, and make it more competitive with other platforms.

Implications of Naira Devaluation on Crypto Adoption in Nigeria

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The Naira, the official currency of Nigeria, has been experiencing a rapid devaluation in recent years, reaching a record low of 570 naira per US dollar in November 2021 and currently exchanging for N765/$1. This has been driven by various factors, such as the COVID-19 pandemic, low oil prices, high inflation, and foreign exchange shortages. The devaluation of the naira has had significant implications for the Nigerian economy and society, affecting various sectors and aspects of life. One of the most notable impacts of the naira devaluation has been on the adoption of cryptocurrencies in Nigeria.

However, the recent devaluation of the Nigerian naira has sparked a renewed interest in cryptocurrency adoption among the citizens of Africa’s most populous nation, the naira has been under pressure for several years due to low oil prices, foreign exchange shortages, inflation and political instability, this move is intended to unify the multiple exchange rates that existed in the country and to ease the pressure on the external reserves.

However, the devaluation has had a negative impact on the purchasing power of Nigerians, who rely heavily on imported goods and services. Many people saw their savings and incomes eroded by the currency depreciation and the rising cost of living. As a result, some Nigerians are turning to cryptocurrencies as a hedge against inflation and a means of preserving their wealth.

Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new units. They operate on decentralized networks that are not controlled by any central authority, such as a government or a bank. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and Litecoin. Cryptocurrencies offer several advantages over traditional currencies, such as lower transaction fees, faster processing times, greater transparency, and enhanced privacy. However, they also pose some challenges, such as volatility, security risks, regulatory uncertainty, and limited acceptance.

Nigeria has been one of the leading countries in Africa and the world in terms of cryptocurrency adoption. According to a report by Chainalysis, a blockchain analysis company, Nigeria ranked third in the world in terms of cryptocurrency adoption in 2020, behind only Vietnam and India. The report estimated that Nigerians traded over $400 million worth of cryptocurrencies in 2020, up from $35 million in 2019. The report also found that Nigeria had the highest percentage of cryptocurrency users among its internet users, at 32%.

The devaluation of the naira has been one of the main drivers of cryptocurrency adoption in Nigeria. Many Nigerians have turned to cryptocurrencies as a hedge against inflation and currency depreciation, as well as a means of preserving their purchasing power and wealth. Cryptocurrencies have also enabled Nigerians to access global markets and opportunities, bypassing the restrictions and limitations imposed by the traditional financial system. For instance, cryptocurrencies have facilitated cross-border remittances, e-commerce transactions, peer-to-peer lending, crowdfunding, and investment opportunities.

However, the devaluation of the naira has also posed some challenges for cryptocurrency adoption in Nigeria. One of the challenges is the regulatory environment, which has been uncertain and hostile towards cryptocurrencies. In February 2021, the Central Bank of Nigeria (CBN) issued a circular prohibiting banks and other financial institutions from facilitating cryptocurrency transactions or providing services to cryptocurrency exchanges. The CBN cited concerns over money laundering, terrorism financing, fraud, and currency stability as reasons for the ban. The ban sparked outrage and criticism from cryptocurrency users and stakeholders, who argued that it was counterproductive and detrimental to innovation and financial inclusion.

Another challenge is the lack of infrastructure and awareness among Nigerians about cryptocurrencies. Despite the high level of cryptocurrency adoption in Nigeria, many Nigerians still lack access to reliable internet connectivity, electricity, smartphones, and digital literacy skills that are essential for using cryptocurrencies. Moreover, many Nigerians are still unaware or skeptical about cryptocurrencies, due to misinformation, myths, scams, and negative perceptions. Therefore, there is a need for more education and awareness campaigns to inform Nigerians about the benefits and risks of cryptocurrencies, as well as how to use them safely and responsibly.

The devaluation of the naira has had significant implications for cryptocurrency adoption in Nigeria. It has increased the demand and usage of cryptocurrencies among Nigerians who seek to protect their wealth and access global opportunities. However, it has also created some challenges for cryptocurrency adoption in Nigeria, such as regulatory uncertainty and lack of infrastructure and awareness. Therefore, there is a need for more dialogue and collaboration between the government, the private sector, and the civil society to create a conducive environment for cryptocurrency adoption in Nigeria.

Tekedia Investment and Portfolio Management program Begins July 3; REGISTER

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Greetings. The next Tekedia Investment and Portfolio Management program will begin on July 3, 2023. The  program is designed to provide learners with hands-on experience in performing investment research, investing capital, and managing a portfolio.  Besides some pre-recorded courseware developed by eminent capital market experts, the program includes live Zoom sessions.

In the academic component, the program prepares learners to master the institutional structure, and fundamental concepts of asset valuation, in financial markets, using analytical tools to study the valuation of different types of securities.  Fundamentally, learners are equipped to understand investment theory, portfolio development and management.

In the practical laboratory component, learners evaluate existing portfolio compositions and past performances, generate new investment ideas, research new opportunities, and make recommendations, based on quantitative and qualitative analyses.

Structure / Start Date

The program is divided into 3 core components – Investment Fundamental and Tools; Laboratories, Research & Investment Capture; and Lessons Learned.   The next edition begins July 3, 2023.

Registration Fees and Payment 

Cost: $400 or N180,000 naira per participant.

For full curriculum and how to register, go here

Why Ndubuisi Ekekwe Believes in Fuel Subsidies, Post Office Subsidies, and Floating Industries over Naira

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I am long on strategic subsidies and I believe that governments can subsidize critical components in market systems. I have been making that point for years.  The job of a government is to create platforms, and then allow private companies to build companies on top of them. In an efficient market system, roads, security, affordable energy, working postal services, etc are platforms. We teach platforms to startups, explaining that if you build a great one, you win your market. Indeed, the largest and richest companies in the world today (Apple, Amazon, Meta, etc) are all platforms, and the most prosperous countries in the world  (China, USA, Japan, etc) build platforms!

In 2019, I was invited to the National Assembly; I made the same point: you need to become effective and subsidize things: “we discussed the mechanics to take this nation from $500B to $3 Trillion GDP. I want to thank the Speaker of the House Femi Gbajabiamila for approving my special day,” I wrote afterwards.

I boldly told our leaders that if they followed my plan that Nigeria would move from $500B to $3 trillion in GDP within 15 years! It was a tough one because I pushed the unconventional wisdom that we must further subsidize postal services, petrol, and education, EFFICIENTLY. I lived in Ovim for years before I left for FUTO. But with our then working post office, I was not far from the city. But when the post office went, the village became a distant place, with the commercial angle gone!

As part of my plan to subsidize more, I noted that Nigeria must remove corruption as a “ministry”. I laid the plan here in my hypothetical presidential speech. I called the removal of corruption Pillar 1 and wrote: “We will build a corruption-free nation where it would be extremely impossible to perpetuate corruption because technology will make things obviously transparent. All government systems must be structured to be corruption-resilient so that people that want to perpetuate corruption will fail.”

Of course, I do not also believe in the floating of Naira unless there is an industrialization playbook (you must float industries before you can efficiently float naira). I have explained that no economic fundamentals within a demand–supply framework would help Naira, when our demand is asymmetrically more than supply: “If I apply what he explained in that book [AO Lawal book on economics], floating naira with no capacity to earn USD dollars will kill Naira, because there is an asymmetric imbalance on demand and supply of USD in the Willing Buyer, Willing Seller nexus. In other words, two people may each have $100 to sell while twenty people want to buy each $100. If you do not close that number to near parity, the equilibrium point will keep shifting and I do not see how Naira will stabilize because demand outweighs supply here.”

Fuel subsidy, postal subsidy and dual exchange rate are not the issues. The challenge is that inefficiency in the government is why they appear to be bad policies as I explained here.

Dual FX in a corruption-free system is a subsidy which can help manufacturers; the US has released $billions to Intel, Ford, etc on different initiatives to help them compete, that is their own FX subsidies and dual exchange! Nigeria at our present state of industrialization will struggle to unify our currency unless our diasporas could be asked to save at least 30% of their salaries in Nigerian banks. 

Like majorly using interest rates to fight inflation in Nigeria which makes minimal sense, our leaders must be creative because our challenges are unique

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